FG Declares Fiscal Years Are Determined by Law, Not Calendar Dates
The Federal Government has clarified that fiscal years are defined by legislative and constitutional provisions rather than the ordinary January-to-December calendar cycle.
The clarification was contained in a statement issued by the Director-General of the Budget Office of the Federation, Tanimu Yakubu, in response to public concerns over delays in the publication of recent Quarterly Budget Implementation Reports.
According to the statement, the Budget Office considered it necessary to explain the constitutional and fiscal framework guiding public finance administration in Nigeria.
The office explained that while the calendar year runs from January to December, the fiscal year is a legal and legislative construct whose duration and implementation timeline are determined by appropriation laws passed by the National Assembly.
It noted that the implementation period of the 2025 Appropriation Act was extended to June 2026 following the repeal and re-enactment process concluded in December 2025, thereby extending the operational lifespan of the budget beyond the conventional twelve-month calendar framework.
The statement stressed that such extensions are lawful and consistent with constitutional provisions governing public expenditure.
According to the Budget Office, Sections 80 and 81 of the 1999 Constitution do not prescribe a rigid twelve-month fiscal cycle but rather require that public expenditure be authorised through valid appropriation laws enacted by the National Assembly.
The office further cited examples from countries such as the United States and India, where fiscal years differ from the January–December calendar structure.
The statement also referenced judicial authorities and previous fiscal adjustments in Nigeria and other Commonwealth jurisdictions, particularly during periods of economic disruption such as the COVID-19 pandemic, when governments extended budget implementation periods to sustain projects and economic stability.
The Budget Office disclosed that following the extension of the 2025 budget implementation timeline, it commenced detailed reconciliations involving revenue reviews, cash management, debt updates, expenditure alignment, and inter-agency coordination to ensure the accuracy and integrity of the Quarterly Budget Implementation Reports.
It added that the outstanding reports are currently being finalised and will be released in phases over the coming weeks.
The office also announced ongoing efforts to strengthen digital reporting systems, improve data harmonisation, and enhance institutional coordination to support more timely and comprehensive fiscal reporting.
The Federal Government reaffirmed its commitment to transparency, fiscal discipline, constitutional compliance, and accountable public financial management in line with international best practices.
FG Declares Fiscal Years Are Determined by Law, Not Calendar Dates